CARIFORUM and UK EPA Study

(STRI). 3940 “The STRI helps identify which policy measures restrict trade, and thus based on the measures employed, the underlying modes of supply can be determined. The STRI indices take the value from 0 to 1, where 0 is completely open and 1 is completely closed. They are calculated on the basis of information in the STRI database which reports regulation currently in force.” While this line of inquiry will be employed to better assess the state of play in the CARIFORUM UK Services trade, it is recognized that Article 60(4) of the EPA allows parties to impose regulations for legitimate policy objectives. In order to supplement the analysis and provide insights by mode of supply to the extent that the data and comparable statistics are available, the Study will also draw on the approach used by EUROSTAT (Rueda-Cantuche, Kerner, Cernat, & Ritola, 2016), which, though experimental, is based on a simplified model that is applied to data on trade in services to obtain statistics by modes of supply (MoS). 41 The difficulty post Brexit, however, will be the fact that this data on EUROSTAT is now published for the EU-27 in the reference year for 2017. The UK has compared the results to its own assessment and find that they are broadly similar except as noted below. Given that the Study will rely on available data of UK services trade with CARIFORUM, the estimates from the UK will be utilised, as the UK has adopted this methodology. 42

39 https://stats.oecd.org/Index.aspx?DataSetCode=STRI 40 https://tcdata360.worldbank.org/indicators/trade.stri.stri

41 https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Services_trade_statistics_by_modes_of_supply 42 https://www.ons.gov.uk/businessindustryandtrade/internationaltrade/articles/modesofsupplyukexperimentalestimates /2019

Page 75 of 241